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SUJIT NARAYAN PRASAD, ARUN KUMAR RAI
Bharat Coking Coal Ltd. – Appellant
Versus
At-Libra BPL (JV) – Respondent
JUDGMENT
Sujit Narayan Prasad, Acting C.J.—The instant appeal under section 13 of the Commercial Courts, Act is directed against the order/judgment dated 08.05.2023 passed by the District Judge-III-cum-Presiding Officer, Commercial Court No. III, Dhanbad, in Original Suit No. 09 of 2019, whereby and whereunder, the suit was decreed in favour of plaintiff/respondent with following directions:
“The suit is decreed without cost, both the parties shall bear their own cost. It is declared that the contract awarded to the plaintiff vide work order No. BCCL/IX/GM/PLNG/AT-LIBRA/H-HEMM/NC/WO/12/673, dated 8.2.2012 was terminated midway by the defendants illegally and unjustifiably; and
It is further declared that the notice of proposed action against the plaintiff communicated vide letter bearing ref. no. BCCL/BA-IX/KOCP/64, dated 30.03.2018 signed on 02.04.2018 is void, illegal and invalid.
The defendants are directed to pay to the plaintiffs following amounts :-
(a) A sum of Rs. Rs.4,20,02,320/- as refund of bank guarantee and retention money combined; and
(b) A sum of Rs.1,80,40,014/- as reimbursement of difference in HPC 08th May 2023 Page No.-93 of 94 In the court of District Judge-
Breach of contract – Award of damages—Work schedule is required for progressive payment and target and it is sine qua non for execution of contracted work.
Maintainability of Suit - Record reveals that defendant’s contention that no notice under Section 80 CPC was given by plaintiffs was also decided in favour of plaintiffs while deciding an application....
The court upheld the binding nature of the contract, ruling that the Plaintiff's claims were untenable due to failure to exercise contractual options and were barred by limitation.
Point of law: When the appeal is presented in terms of Section 96 CPC and when this Court is considering this appeal not only as a last Court of fact but also in terms of law, it is open for the appe....
The main legal point established in the judgment is that contractual clauses must be reasonable and not unconscionable, and contractors should be paid within a reasonable time as per Section 46 of th....
The judgment established the requirement for reasonable time for payment and the illegality of clauses that postpone consideration indefinitely.
Point of law: When a contract has been broken, if a sum is named in the contract as the amount be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the....
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